The Ademi Firm announced it is investigating scPharmaceuticals (NASDAQ: SCPH) for possible breaches of fiduciary duty and other violations of law in its transaction with MannKind. Shareholders of scPharmaceuticals are set to receive $5.35 per share in cash plus contingent value rights worth up to $1.00 per share.
The investigation highlights that scPharmaceuticals insiders are expected to receive substantial benefits as part of change of control arrangements. Additionally, the transaction agreement reportedly imposes a significant penalty if scPharmaceuticals accepts a competing bid, potentially limiting shareholder value.
The Ademi Firm is examining the conduct of the scPharmaceuticals board of directors to determine if they are fulfilling their fiduciary duties to all shareholders. This investigation adds to the legal scrutiny surrounding the terms and process of the proposed acquisition by MannKind.
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